E-file Nontaxable Combat Pay

[Unregistered]

Client came in with his W-2 from DFAS. It shows no wages in box 1. But there are SS wages and Med. wages. In box 12 there are nontaxable combat zone wages coded Q.
My software says that since there are no wages in box 1, this can't go electronic. (I know that the IRS isn't online yet. Just getting ready to go.)

Do any of you know of any codes the IRS has issued to allow the return to be efiled in this circumstance? Seems kind of unfair to make these guys(gals) wait for their refund from a mail in.

Any help appreciated.

[Nancy]

According to Pub 1345A

According to IRS Pub 1345A, the e-file check for wages in W-2, box 1 is bypassed if combat pay is excluded from wages. This means the IRS is allowing e-file even if wages are zero in box 1.

You might want to check your software data entry to see if there are any special indicators for combat pay.

[Unregistered]

According to IRS Pub 1345A, the e-file check for wages in W-2, box 1 is bypassed if combat pay is excluded from wages. This means the IRS is allowing e-file even if wages are zero in box 1.

You might want to check your software data entry to see if there are any special indicators for combat pay.

Thank you for your help. I have been checking the 1345A and have not found that. Could you tell me where you found it?

[ecb34691]

Try $1 in box 1. Have used that in prior years for 3rd party sick pay which also has zero in box 1.

[Unregistered]

Try $1 in box 1. Have used that in prior years for 3rd party sick pay which also has zero in box 1.

Well, I know that would work. But, I beleive it is illegal to change anything on a W-2. I think it must be filed exactly as presented.

[Nancy]

Search function in PDF file

To find the mention of "combat pay" in IRS Pub 1345, use the Adobe search function:

1. Click on the search icon on the tool bar (a picture of a pair of binoculars).
2. Enter "combat pay" in the search box and click "search".
3. Review all occurences found. I found 13 occurences.

The one that looked most likely to me was the one that shows a field on Form 1040, line 66b (regarding the combat pay election).

[Unregistered]

Thanks Nancy. Found some info